The following excerpt is from Citadel General Assurance Co. v. Lloyds Bank Canada, [1997] 3 SCR 805, 1997 CanLII 334 (SCC):
19 There are three ways in which a stranger to a trust can be held liable as a constructive trustee for breach of trust. First, a stranger to the trust can be liable as a trustee de son tort. Secondly, a stranger to the trust can be liable for breach of trust by knowingly assisting in a fraudulent and dishonest design on the part of the trustees (“knowing assistance”). Thirdly, liability may be imposed on a stranger to the trust who is in receipt and chargeable with trust property (“knowing receipt”; see Air Canada v. M & L Travel Ltd., supra, at pp. 809-11).
Get a full legal research memo!
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexsei.com.